BTB REIT (BTB.UN) AI Stock Analysis

• Market Cap: C$321.29M
• Dividend Yield: 8.22%
• Average Volume (3M): 93.91K
• Price to Earnings (P/E): 8.2
• Beta (1Y): 0.86
• Revenue Growth: 3.34%
• EPS Growth: 10.20%
• Country: CA
• Employees: 81
• Sector: Real Estate
• Sector Strength: 72
• Industry: REIT - Diversified
• EPS (TTM): 0.09
• Shares Outstanding: 88,024,110
• 10 Day Avg. Volume: 82,976
• 30 Day Avg. Volume: 93,906
• PEG Ratio: 0.09
• Price to Book (P/B): 0.66
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 2.31
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$3.55
• Price Target Upside: -2.74% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 78 Outperform
• Price Target: C$4.00 ▲(9.59%Upside)

BTB REIT benefits from strong financial performance, attractive valuation, and positive earnings call insights. Although technical indicators suggest potential near-term volatility and challenges such as debt levels and occupancy rates need addressing, the overall outlook remains positive, supporting a solid stock position.

Positive Factors

Analyst Recommendation

Analyst recommends BTB REIT a BUY, largely supported by a highly attractive distribution that is supported by existing cash flow.

Industrial Segment Performance

Healthy operating performance from the industrial segment drives growth.

Valuation

BTB’s units currently trade at an implied cap rate of 7.8% or a discount to NAV estimate of 13.3%, which compares favorably to the REIT’s peers.

Negative Factors

FFO Performance

FFO per unit drops 14% year-over-year.

Interest Expense

Greater interest expense and tenant bankruptcy negatively impacted interest expense.

Refinancing Impact

Refinancing mortgages over the past year at higher rates led to greater interest expense and the weighted average interest rate rose 41 bps year-over-year to 4.69%.

BTB REIT Business Overview & Revenue Model

Company Description

BTB is a real estate investment trust listed on the Toronto Stock Exchange. BTB is an important owner of properties in eastern Canada. As at November 10th, 2020, BTB owns 64 retail, office and industrial properties for a total leasable area of approximately 5.3 million square feet and an approximate total asset value as of September 30th, 2020 of approximately of $946M.

How the Company Makes Money

BTB REIT generates revenue primarily through the leasing of its commercial properties. The company earns rental income from tenants who occupy its office, retail, and industrial spaces under long-term lease agreements. BTB REIT's revenue model is supported by the strategic acquisition of properties with high occupancy rates and favorable lease agreements, ensuring consistent cash flow. Additionally, the company may engage in property development or redevelopment projects to enhance the value of its portfolio, thus potentially increasing rental income. BTB REIT also benefits from economies of scale and operational efficiencies achieved through effective property management and cost control measures. Significant partnerships with real estate brokers, contractors, and property management firms also contribute to its earnings by enhancing the value and appeal of its assets.

BTB REIT Financial Statement Overview

Summary

BTB REIT showcases a strong financial profile with consistent revenue and profit growth, efficient operations, and a stable balance sheet. While the company demonstrates excellent margin performance and cash flow generation, the high debt level and recent free cash flow contraction warrant monitoring.

Income Statement

BTB REIT has demonstrated strong financial performance with consistent revenue growth over the years, increasing from $92.97M in 2020 to $131.81M in TTM. The gross profit margin remains robust at approximately 58% for TTM, indicating efficient cost management. The net profit margin is healthy at around 29.74% TTM, reflecting solid profitability. EBIT and EBITDA margins are also strong at 51.31% and 58.04% TTM, respectively, showcasing operational efficiency.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 1.49 in TTM, which is typical for a REIT. The company maintains a healthy return on equity (ROE) of 7.91% TTM, indicating efficient use of equity. The equity ratio stands at 39.21% TTM, which reflects a balanced capital structure, though the high debt level is a point of caution.

Cash Flow

BTB REIT's cash flow is strong, with a solid operating cash flow to net income ratio of 1.35 TTM, indicating robust cash generation. The free cash flow to net income ratio matches this, further emphasizing cash efficiency. However, the free cash flow growth rate is negative at -19.78% from the previous year, indicating some volatility in cash generation.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
131.81M	130.03M	127.83M	119.50M	100.34M	92.97M
	Gross Profit
76.50M	75.05M	75.38M	70.43M	56.34M	51.26M
	EBIT
67.63M	63.86M	75.38M	70.43M	56.34M	51.26M
	EBITDA
76.50M	75.84M	71.30M	63.12M	49.58M	44.61M
	Net Income Common Stockholders
39.20M	38.74M	36.60M	38.15M	17.36M	-22.60M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
5.45M	2.47M	912.00K	2.40M	7.19M	9.06M
	Total Assets
1.26B	1.26B	1.23B	1.18B	1.13B	926.67M
	Total Debt
736.96M	735.24M	724.23M	692.15M	687.72M	552.49M
	Net Debt
731.51M	732.77M	723.32M	689.75M	680.52M	543.42M
	Total Liabilities
768.52M	761.72M	749.99M	717.27M	725.48M	584.60M
	Stockholders Equity
495.94M	494.28M	477.65M	462.07M	404.43M	342.07M
Cash Flow		Free Cash Flow
52.93M	66.00M	70.80M	131.95M	56.34M	45.97M
	Operating Cash Flow
52.93M	66.00M	70.85M	66.24M	56.54M	46.15M
	Investing Cash Flow
-23.41M	-19.58M	-46.38M	-65.71M	-71.73M	12.13M
	Financing Cash Flow
-25.85M	-44.87M	-25.96M	19.48M	13.32M	-51.02M

BTB REIT Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.65
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:BTB.UN, the sentiment is Positive. The current price of 3.65 is above the 20-day moving average (MA) of 3.61, above the 50-day MA of 3.46, and above the 200-day MA of 3.36, indicating a bullish trend. The MACD of 0.05 indicates Positive momentum. The RSI at 64.91 is Neutral, neither overbought nor oversold. The STOCH value of 41.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:BTB.UN.

BTB REIT Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BTB.UN	78 Outperform	C$321.29M	8.24	8.03%	8.22%	3.34%	10.20%
NET.UN	78 Outperform	C$110.61M	6.89	11.99%	6.42%	-0.90%	9.33%
FCD.UN	77 Outperform	C$218.23M	7.68	9.43%	8.79%	5.06%	43.11%
PRV.UN	71 Outperform	C$342.59M	12.75	5.68%	7.96%	-1.07%	684.07%
MRT.UN	59 Neutral	C$370.26M	―	-3.77%	4.21%	0.18%	68.25%
Sector *	59 Neutral	C$1.23B	0.78	-8.20%	5.07%	9.89%	-25.14%
MR.UN	56 Neutral	$71.17M	―	-16.65%	0.73%	-2.12%	-287.56%